SWOT, PESTEL, and BCG Analysis of Cloudera Inc.

This essay discusses the SWOT, PESTEL, and BCG analysis of Cloudera Inc. It includes strengths, weaknesses, opportunities, and threats of Cloudera. It also analyzes external factors that may have an impact on the business. The BCG matrix analyses different lines of products and helps the company allocate resources appropriately.

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Strategy and Policy
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Introduction
Cloudera Inc. is a software company based in the United States. It deals with data
warehousing, data engineering, machine learning, and analytics. It was formed in 2008 by three
engineers from yahoo, Google, and Facebook. Cloudera delivers the most current platform for
machine learning and analytics which are optimized for cloud. It helps people to access all their
data on one platform. This essay discusses the SWOT, PESTEL, and BCG analysis of Cloudera
Inc.
Cloudera SWOT analysis
SWOT analysis is an important tool that can be applied by Cloudera Company to carry
out the company’s situation analysis. It assists the company to identify its strengths, weakness,
opportunities, and threats.1 With SWOT analysis the company is able to identify internal
strategic factors which include strengths and weaknesses and external strategic factors like
opportunities and threats.
Strengths for Cloudera
Cloudera being among the leading companies in its sector, it has several strengths that
assist it in succeeding in the business world. The strengths helps Cloudera Inc. in protecting its
present market share as well as assisting it penetrate new markets.2 The strengths of Cloudera
include good returns on capital expenditure that they get through building new revenue streams.
1 "A STUDY BASED ON CLOUDERA S DISTRIBUTION OF HADOOP TECHNOLOGIES
FOR BIG DATA" (2017) 4(08) International Journal of Advance Engineering and Research
Development.
2 "Cloudera Awards Five PMI Grants" (2016) 3(10) Clinical OMICs.

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Cloudera has got a strong brand portfolio which is very helpful when the firm is venturing into
new product categories. Cloudera has reliable suppliers of raw materials hence enabling the firm
to overcome any supply chain bottleneck. Also, Cloudera Inc. has a strong dealer community
whereby it has established as strong culture among distributers and sellers that helps it in
promoting its products.
Threats facing Cloudera
Cloudera can be threatened by the new technologies that have been developed by its
competitors.3 Another threat is the low quality products and imitation of the counterfeit products
in the emerging business markets. In addition, new environmental regulations and continuous
change of consumer’s buying behavior may be a big threat to Cloudera.
Weakness for Cloudera
Weaknesses in Cloudera are areas where the company can improve on that may be
effective using the SWOT analysis. Some of the weaknesses of Cloudera are limited success out
of its core business.4 Another weakness is inefficient and inadequate financial planning, little
marketing of the product, and high day’s inventory compared to their competitors
Opportunities for Cloudera
3 Machine Learning | Analytics | Cloud - Cloudera (2018) Cloudera
<https://www.cloudera.com/>.
4 Cloudera, Inc. (CLDR): Analysts Giving Thumbs Up Or Thumbs Down? | KYMA News (2018)
Kymanews.com <https://kymanews.com/2018/11/23/cloudera-inc-cldr-analysts-giving-thumbs-
up-or-thumbs-down/>.

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Cloudera is provided with the opportunity of investing in close product segments. With
enough finances, Cloudera can invest in new technologies and new product segment. Another
opportunity for Cloudera is the lower inflation rate which leads to stability in the market
enabling lower interest rates on credit to Cloudera customers.
PESTEL analysis for Cloudera
PESTEL analysis is a tool that is used to analyze external factors that may have an impact
on the business. PESTEL stands for political, economic, social, technological, ecological, and
legal factors.
Political factors that may affect Cloudera Inc.
Political factors may affect chances of survival of a company. Therefore, Cloudera should
put into consideration the following factors before taking part in any investments; the recent
political stability of the country, the level of taxation, and trade barriers that are in the host
country since they can affect Cloudera positively or negatively.
Economic factors
Economic factors include all factors related to the economy in which Cloudera is
operating like the inflation rate, interest rates, gross domestic product and foreign exchange rate.5
5 Hadoop Market By Product (Software, Hardware And Services) And Application
(Manufacturing, Retail, Telecommunication, Government Sector, Media And Entertainment, IT
And ITES And Hospitality And Travel) - Global Opportunity Analysis And Industry Forecast,
2013 - 2020 (2018) Allied Market Research <https://www.alliedmarketresearch.com/hadoop-
market>.

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This factor has an effect on aggregate investment and aggregate demand. Cloudera should
consider these factors before investing.
Social factors
The society in which Cloudera operates in may affect its operation. The social factors
include culture, attitudes, beliefs, and values that are hold by the community. The social
challenges that affect Cloudera include demographics of the population, difference in education
background and health standards.
Technological factors
Technology is a very important tool for the success of any business hence companies
should consistently innovate to prevent obsolescence in future. Technological factors that may
influence Cloudera are recent improvements in technology by its competitors and the effects of
technology on the costs that it is subjected to that may in turn reduce its profits.
Environmental factors
Different industries have different standards of environmental protection. Therefore,
Cloudera and other companies should ensure that they are not the target for violating
environmental protection rules.6 The environmental factors that may affect Cloudera include the
climate change that may make some products to be less useful and if Cloudera produces a lot of
waste it should manage its environmental habits.
6 Cloudera, Inc. PESTEL / PEST & Environment Analysis[Strategy] (2018) Fern Fort University
<http://fernfortuniversity.com/term-papers/pestel/nyse4/3426-cloudera--inc-.php>.

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Environmental factors such as weather, environmental offsets, climate. The factors are
important to Cloudera due to increasing pollution and even scarcity of raw materials.
Legal factors that Cloudera Company should consider are discrimination laws which are
enforced by the government to protect employees, health and safety laws, and pricing and quality
laws to protect customers.
BCG matrix analysis
This analysis assists firms to analyze their different product lines and allocate resources
where appropriate. The matrix consists of the dogs which represent product lines that have
smaller market share in a slow-growing and mature industry.7 The product lines are able to earn
what they have invested and maintain their market share.
The stars on the hand are business units that have large market share. Cloudera should
aim to convert stars into its next cash cows with the unavoidable reduction in the growth of the
company. Therefore, Cloudera should try to maintain its position in the market to avoid turning
stars to dogs.
The unknowns
Are those business units that have a small market share. Most companies start from this
point and at this point the business unit has the ability to grow the market share and convert it
into a star or the entire market share which makes the company to turn into dogs after decline of
7 Lianjie Zhou et al, "An Efficient Method Of Sharing Mass Spatio-Temporal Trajectory Data
Based On Cloudera Impala For Traffic Distribution Mapping In An Urban City" (2016)
16(11) Sensors.

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the market share.8 Axes represent the relative market share which leads to high cash return and
market growth which means that Cloudera will have more earnings and regular profits.
Conclusion
Every company should analyze factors that may affect a smooth operation of its business.
Carrying out a SWOT analysis on a business will enable a company to know the strengths,
weaknesses, opportunities and threats that may affect the business. PESTEL analysis tool assist
the business to know the external factors that may affect the operation of the business.
Additionally, the BCG matrix analyses different line of products and help the company allocate
resources appropriately
Bibliography
8 Stock Market News, Stock Advice & Trading Tips | Investorplace (2018) InvestorPlace
<https://investorplace.com/stock-quotes/cldr-stock-quote/>.

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"A STUDY BASED ON CLOUDERA S DISTRIBUTION OF HADOOP TECHNOLOGIES
FOR BIG DATA" (2017) 4(08) International Journal of Advance Engineering and Research
Development
"Cloudera Awards Five PMI Grants" (2016) 3(10) Clinical OMICs
Cloudera, Inc. (CLDR): Analysts Giving Thumbs Up Or Thumbs Down? | KYMA News(2018)
Kymanews.com https://kymanews.com/2018/11/23/cloudera-inc-cldr-analysts-giving-thumbs-
up-or-thumbs-down/
Cloudera, Inc. PESTEL / PEST & Environment Analysis[Strategy] (2018) Fern Fort University
http://fernfortuniversity.com/term-papers/pestel/nyse4/3426-cloudera--inc-.php
Hadoop Market By Product (Software, Hardware And Services) And Application
(Manufacturing, Retail, Telecommunication, Government Sector, Media And Entertainment, IT
And ITES And Hospitality And Travel) - Global Opportunity Analysis And Industry Forecast,
2013 - 2020 (2018) Allied Market Research https://www.alliedmarketresearch.com/hadoop-
market
Machine Learning | Analytics | Cloud - Cloudera (2018) Cloudera https://www.cloudera.com/
Stock Market News, Stock Advice & Trading Tips | Investorplace (2018) InvestorPlace
<https://investorplace.com/stock-quotes/cldr-stock-quote/>
Tummalapalli, Sahithi and Venkata rao Machavarapu, "Managing Mysql Cluster Data Using
Cloudera Impala" (2016) 85 Procedia Computer Science

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Zhou, Lianjie et al, "An Efficient Method Of Sharing Mass Spatio-Temporal Trajectory Data
Based On Cloudera Impala For Traffic Distribution Mapping In An Urban City" (2016)
16(11) Sensors